US creates 164K jobs in July, unemployment rate steady at 3.7%

The unemployment rate in the US in July remained unchanged at 3.7 per cent, even as 164,000 jobs were created in the month, according to a government report. Hiring slowed sharply in transportation, warehousing and construction, but was steady in health care, the Bureau of Labour Statistics stated in its monthly employment situation report. The non-farm payroll employment rose by 164,000 in July, and the unemployment rate was unchanged at 3.7 per cent, it said.

Soon after the report was released, the White House said the creation of 164,000 jobs was a sign that the American economy is "doing great". Despite the continued low unemployment rates over the past year, there may still be workers on the sidelines, a situation economist refer to as "labor slack", it said.

"Because labor market slack still exists, employment can continue to rise and the economy can continue to grow as workers re-enter the labour force. In July, 73.8 percent of workers entering employment came from out of the labour force rather than from unemployment," the White House said. It claimed under Donald Trump's regime, job gains have surpassed 100,000 jobs in 29 of the 32 months.

The average job growth over the past six months is a healthy 141,000 jobs. In July 2019, just over 6 million people were unemployed, compared with more than 14 million in July 2009 at the beginning of the economic expansion, it said, adding that given low unemployment, monthly job gains of this size indicate that the labour market is truly flourishing. The opposition Democrats also acknowledged the progress in the economy as indicated in the monthly employment report.

Congresswoman Carolyn B Maloney, Vice Chair of the US Congress Joint Economic Committee, said employers continue to hire at a solid pace as part of the longest US economic recovery on record.     "The economy has withstood President Trump's erratic policies, including trade disputes with China and some of our closest allies that have contributed to a slowdown in global manufacturing," she said. House Speaker Nancy Pelosi said, "The July jobs report shows some encouraging news, but for the families across the nation working multiple jobs and struggling to make ends meet, the cost of living has surged, wages have stagnated."